Pulling Credit Reports

It’s not uncommon for us to find violations related to pulling credit reports. First and foremost, an institution must have a permissible purpose to do so. A permissible purpose is any legitimate business purpose initiated by a consumer. So, for example, if someone comes in to open a new account, apply for a loan, etc., that would be a permissible purpose to pull a credit report. We do recommend institutions have some way to demonstrate their permissible purpose. For instance, maybe you keep a signed application, signature card, or other documentation to justify why you pulled the credit report.

Kevin explains more in the video.


Lending Resources!
Published 
2025/11/14

Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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